U.S. Cracks Down on Philippine Company Behind $200 Million Crypto Scam

The U.S. Treasury Department has taken strong action against a company in the Philippines, Funnull Technology, and its leader, Liu Lizhi, for helping run massive cryptocurrency scams.

On May 29, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) said Funnull was involved in many scam websites linked to fake crypto investment platforms. These scams have reportedly stolen more than $200 million from people around the world.

How the Scam Worked

Funnull bought large numbers of IP addresses—basically, online identities—from major tech companies. Then, they sold these to scammers who used them to build fake websites that looked like trustworthy crypto trading platforms. People were tricked into thinking they were investing their money safely, but in reality, the scammers simply stole their cryptocurrency.

In 2024, Funnull took their scam further by secretly changing code used by web developers. This code redirected people visiting real websites to fake ones or online gambling sites without their knowledge. This made it hard for authorities to track down and shut these fake websites, as scammers could easily change their online locations.

Sanctions Against Liu Lizhi and Funnull

Liu Lizhi, a Chinese national and the head of Funnull, has now been added to the U.S. government's Specially Designated Nationals and Blocked Persons (SDN) list. This means all his assets in the U.S. are frozen, and no U.S. citizen or company is allowed to do business with him or Funnull. Anyone who does could face legal trouble.

Two cryptocurrency wallets linked to Funnull were also targeted by OFAC. These wallets were reportedly used to collect money from victims of the scam.

Part of a Bigger Scam Network

According to blockchain research company Chainalysis, Funnull is a major player in a scam network known as "Triad Nexus." This network includes over 200,000 fake websites, many of which pretend to be trading platforms or investment apps, tricking people into handing over their money.

Fighting Back Against Crypto Scams

This move is part of a larger effort by the U.S. government to stop cybercriminals by breaking down the systems they use to run crypto scams. Officials hope it will make it harder for scammers to operate and protect people from losing money.